Type of Submission

Refereed Article


The Employment-Based Fifth Preference program (EB-5) is one of five categories of employment- based visas that provide permanent residency to foreign nationals in the United States. In return, foreign nationals interested in the program are required to make investments of $1 million in busi- nesses and create a minimum of ten jobs in the United States. Since its creation in 1990, the EB-5 pro- gram has had a significant economic impact in the United States through infusion of external capital into the economy and through the creation of thousands of jobs. The hospitality industry has been one of the popular industries that have attracted a lot of EB-5 capital since 1990. Part of the attraction of the hospitality industry to investors is the labor-intensiveness of the industry, so EB-5 investors are able to meet the job creation requirement of the program easily. There have been recent changes to the program, however lack of congressional authorization of the program in 2021 is holding the changes and the fate of the EB-5 program in limbo. Notwithstanding the current challenges facing the program, the hotel and restaurant industries have benefited greatly from the financing provided by EB-5 investors.